PSX: KSE 100 Index falls by over 500 points on IMF loan

Pakistan Stock Exchange or PSX had seen the massive decline as KSE 100 Index fell by over 500 points in a single day.

KSE 100 Index declined by 561 points (1.37%) and reached at 40,326.53 points. However, the observed cumulative loss was reached 3.45% since February 6. According to financial analysts, the sharp decline was due to the possibility of availing of IMF loan by the government.

Earlier, it is believed that with the high payment of around $5 billion coming in upcoming months, Pakistan may be obliged to take the International Monetary Fund or IMF bailout.

According to sources, repayment of over $700 million will be made from January-June 2019, that includes around $500 million principal amount and over $200 million interest payment. Bilateral repayments are also projected at over $1.2 billion.

IMF also asked the Pakistani government to take new measures on the taxation front. However, International Monetary Fund urged the country to enhance its revenue collection on the short term basis.